Acquiring New Customers By Giving Away Something Free
Online businesses sound like an easy way to make money. You have this idea cooking in your head and you are wondering if it could work. After some time, you decided to give it a try and set up a website. That is when you realize you need paying customers in order to start making money. Here is how the process usually works.
The first thing you do is to set up new products for your web business. You then price them appropriately, and put them up for sale on your website.
The second step is to drive targeted traffic to your website. You can do so via pay per click advertising, article marketing, forum advertising, and other forms of online marketing.
Most people believe that traffic generation is the hardest. That is not true at all if you know how to generate traffic for your website. The next and final step is the most difficult – and that is to get people to buy from you. Internet marketers call this conversion rate. It is the rate at which your web visitors buy from you. The higher the conversion rate, the more sales (and money) you make from your website.
When it comes to conversion, three things matter most. One, you have to have the right offer for the customer. Your product should bring as much value as possible to the customer. Two, the pricing has to be right. Even with the right offer, you can’t get people to buy if they don’t have the budget to pay for your products. Finally, there has to be a certain level of trust and credibility established. Yes, you can get the occasional sale from a cold visitor but the chances are low. The refund rates are also higher from cold visitors.
Assuming that you have the right offer and the right pricing, all that you need to do is to establish trust. This is where most business owners fail. In a faceless world such as the Internet, how do you go about establishing trust?
One way that has been proven to work very well is to give away free items to your prospects. Why does this method works so well?
1) Builds goodwill. Your free gift immediately builds up a certain level of goodwill with the prospect. It’s like meeting someone for the first time and then you bring gifts. You are immediately making the other party happy.
2) Provides a risk free sample. Many people are unwilling to fork out hard earned money for products that they haven’t tried before. By giving away something free, you can let them have a taste of what is to come. If they like the gift, they may return to make purchases.
3) Customers remember you better. If you send them something free, they are more likely to remember where they received the gift from (your website!). That may prompt them to return to buy from you.
4) Popular free items create buzz. You don’t even have to use something that is related to your business for this work. If you give away popular products for free (such as audio players, computer tablets or mobile phones), that will help generate more marketing buzz for your Company and in turn, lead to more sales.